FXB Trading Articles

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Starbucks might be about to surprise Wall Street

For years Starbucks Corporation’s (SBUX) shares have mirrored their phenomenal success, but recently the coffee giant has come under attack from the likes of McDonalds and other fast food giants as well as indie coffee shops which has been reflected in the value of their share price.

After reaching a peak price of $64.87 in June, Starbucks shares are down 1.41% overall this year. However, Starbucks has expanded into new territories and brought greater convenience to its clients with the use of innovation which has prompted some analysts to predict that the coffee-making giant will surprise Wall Street when it releases its fourth quarter earnings on November 2.

Starbucks experienced tremendous growth between 2011 and 2016 with sales growth above 5%. It all changed in the third quarter of 2016 when sales growth was just 4% while for the first time transaction growth was flat. For the next quarter, sales growth remained below 5% while transaction growth was negative (-1%).

Starbucks’ growth has been affected by competition from indie coffee shops and traditional fast food giants who have widened their menus to capture some of the coffee drinking market.

Indie coffee shops are opening everywhere and have taken away the trend-focused millennials market, while the price-focused crowd is now going to McDonalds for their coffee.

Changing consumer preferences have had a big influence on Starbuck’s recent performance. The competition has expanded their menu options and physical store locations to better reach a wider customer base which has drawn consumers away from Starbucks and resulted in the slow down of sales growth.

As a result, Starbucks has embarked on a three-pronged response to the threats.

The first is Starbucks’ mobile ordering and pay app which boosted sales last quarter. Mobile payments now account for 30% of Starbucks transactions in US stores up from 29% in Q2 and 27% in Q1.

As Starbucks is concerned that it could lose its edge to independent coffee shops it has invested in opening high-end roasteries to maintain its upscale reputation as the second part of its response to the threat on sales growth. Starbucks intends to open 20 to 30 Roasteries, which are tourist-friendly mega-locations roasting coffee in-house and serving expensive drinks.

 

For more detail : Starbucks might be about to surprise Wall Street

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Buckle up the Tesla ride is going to be bumpy

This looks like the time for traders to bet against Tesla (TSLA) shares in the short term as the market reacts to reports that Model 3 electric vehicle (EV) deliveries are going to be delayed with news stories about escalating production costs, production line issues and lay-offs throwing doubt on the company’s ability to turn a significant profit on its new model.

The chart above shows that after steep rise of 68% throughout the year the share price is showing signs of volatility. 

Barclays were among the first to advise their clients to short Tesla with their analyst Brian Johnson suggesting a $210 price target – well below the $340 consensus on Wall Street. 

Barclays feel Tesla’s November 19 announcement about truck production will be decisive in swaying investor confidence in the company. 

Tesla are projecting production targets of several million per year in the near future as well as significant progress in other business opportunities like battery storage. 

On the back of these projections some analysts have been uber-bullish about Tesla with Morgan Stanley’s Adam Jonas – who is widely followed on Wall Street – raising his 12-month price target from $317 to $379. 

Jonas is basing his outlook on a long-term perspective. 

Traditional manufacturers, like General Motors, have revealed plans to roll out their own EVs raising fears about Tesla’s ability to handle competition. 

However, Tesla have already made a huge investment in infrastructure for EVs (over $8 billion), on service centres, stores, galleries and the world’s largest battery factory as well as proprietary investment in superchargers and destination chargers globally. And this is where Tesla have a significant advantage over traditional manufactures. 

In the short-term, news stories about parts of the Model 3 being made by hand and job losses in the hundreds – at a time when production targets on the new model are not being hit – are having a negative impact on the share price. 

 

For more detail : Buckle up the Tesla ride is going to be bumpy

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Forex coaching pays dividends

Trading forex is a bit like driving, if you don’t get a few lessons from someone who knows what they’re doing you’ll probably crash. A good forex trading coach will help you become a profitable trader far sooner than if you dive into trading without proper training.

A good trading coach, much like a good driving instructor, is aware of the mistakes a novice is likely to make and is able to steer you around or away from them and can explain why a certain course of action or choice is the better option. Much like driving, most of us want to learn so that we can use it safely, frequently and of course successfully. Driving without caution or at high speeds, without understanding the dangers, mirrors unprofitable or high risk trading and inherently increases the chance of losing money.

Once you’ve accepted that coaching is the best way to start the next step is choosing which coach is right for you. In most situations where you need an expert, your natural instinct is to gravitate to the best available. This is where most people run into their first hurdle, as the industry is littered with so-called ‘forex gurus’ but who are not even professional traders.

A recommendation from someone you know and trust is always a good place to start, but if no-one you know can advise you on coaching for forex trading there are some things to look out for which will help you make an informed choice.

‘Try before you buy’ is a good way to get a better idea of the quality of the training a forex coach is able to provide, so it makes sense to look into some of the free training advice your potential coach might offer on their website.

If the coach you’re looking at doesn’t offer any advice for free and is simply trying to sell you a product that makes some grand promises based on past performance it is best to stay clear.

Another simple test to carry out is to discover if you are dealing with a real person. A forex coach who features in his or her own videos and uses their real name is more likely to be a genuine trader with something useful to offer. Try out the phone number, email or any other contact information provided and check out if they are really on the other end of that communication line. If they are present it means they’re also accountable and that is a sure sign they are confident in what they’re offering.

People who constantly seek out new learning tend to be more successful than those who settle on what they know and plod a familiar path. Coaching provides an ongoing learning process, even for those who are already at the top of their own mountain. When Rafael Nadal achieved Number 1 status in the tennis world the first thing he did was increase his coaching staff.

 

For more detail : Forex coaching pays dividends

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Why Choose the MetaTrader 5 Trading Platform

Successful traders from around the world have chosen the MetaTrader 5 (MT5) platform for trading Forex, exchange instruments, futures, and CFDs. MetaTrader 5 is an effective, multi-functional platform that provides everything you need to trade the financial markets. MT5 platform can be used by advanced traders as well as beginners since it can be expanded to incorporate additional programs and instruments.

The platform offers advanced financial trading functions as well as superior tools for technical and fundamental analysis. MetaTrader 5 can also trade automatically by using trading robots and trading signals. It is a trading platform that is capable of processing different financial instruments with a wide range of trading activity. Traders may use a wide selection of pre-installed technical indicators and graphical objects to analyse the markets.

The MetaTrader 5 trading system offers an advanced Market Depth feature (with a tick chart and Time & Sales information), a separate accounting of orders and trades, the support of all types of trading orders and execution modes. It also allows you to chart assets at 21 different time frames and gives you the ability to have up to 100 charts open at any given time. With the One Click Trading function and the Market Depth option, users can buy and sell currency pairs, equities, futures and CFDs with just one click. More advantages of MT5 include a user-friendly interface, larger icons, and a wider range of timeframes.

For more detail : Why Choose the MetaTrader 5 Trading Platform

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Best forex risk management strategies

How to Get Best Forex Risk Management Strategies in Forex Trade?

The Forex market has a daily trading volume of about three trillion dollars. In order to earn money successfully, you have to develop a very clever Forex risk management strategy. Of course, you cannot earn profits all the time with every single move. You have to deal with risk in order to earn profits as it is all about winning or losing in this trade. Portfolios that provide the best risk strategy are based on the experience of investors and traders.

Role of Brokers in Forex Risk Management

An investor should look for the most reliable and trustworthy financial partner with the best reputation in the Forex trade market. Trading in the Forex market becomes easier when you have professional and expert advice.

For more detail : Best forex risk management strategies

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Bitcoin mania: Is it too late to join the rush?

When the Wall Street Journal runs a headline that reads Bitcoin: Even Grandma Wants In On The Action, you’re simply compelled to find out more about the stand-out cryptocurrency that is grabbing all the attention.

For months now, Bitcoin’s rapid price swings have been prompting volatility-starved investors to join the biggest speculative boom since the dotcom fever in the 1990s.

In the six minutes following the start of Bitcoin futures trading, the contract expiring in January which opened at $15,000 rose to $16,600.  Trading on Monday morning (December 11th) in London the contract was changing hands at $17,500. Bitcoin itself was at $16,635.05 according to CoinDesk. Right now there is no hotter ticket having started 2017 at $968.23.

The temptation to join the rush is tempered by the fear that its value is being driven purely on speculation and that the bubble is about to burst.

Some are convinced it’s the real thing. John McAfee – founder of the eponymously named software – doubled down on his previous prediction and claimed: “I’ll eat my own d**k on national TV if Bitcoin doesn’t surpass $1 million by 2020.”

More and more investors have chosen to set aside Bitcoin’s questionable past, for instance its use by criminal elements, and focused on the potential that it could replace gold as an investment to hold when faith ebbs in fiat currencies.

“We now have millions of active users,” said Peter Smith, chief executive of Bitcoin services firm Blockchain.info. “We didn’t have a million last year.”

Bitcoin’s meteoric rise has seen interest increase in other cryptocurrencies like Litecoin, Ethereum, Dash and Ripple. The latter’s Interledger protocol is being explored by Microsoft as part of their own blockchain toolkit offering.

CME Group Inc., the world’s biggest exchange group, and Goldman Sachs Group Inc. Have fuelled interest further by announcing intent to introduce products based on the virtual currency. CME’s Bitcoin futures contract is expected next week. Who knows what the price will be when that happens.

They’ve witnessed the increasing number of investors and traders being drawn by Bitcoin’s volatility in a market where stocks and bonds have produced modest gains. Even technology stocks, which have rallied sharply this year, can’t compete with Bitcoin which has jumped 17-fold.

For more detail : Bitcoin mania: Is it too late to join the rush?

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Why most traders do not succeed in forex Trading?

Making profits through stocks and shares is not an easy job. Inadequate trading methods, lack of confidence, patience and discipline can lead to a lack of success in the stock market. A trader should really know the tricks of trading. Inexperienced traders, who lack insight, risk all their money in one stock without planning before investing. Planning is a necessary standard in the stock market as complex trading techniques and lack of planning will contribute to the failure of the trader; therefore, successful traders always develop a plan.

Lazy Traders will definitely fail

Without significant planning a trader will fail. Many traders are too lazy to develop a successful trading plan as it requires a lot of effort. Effort is necessary for success in the stock market, not just luck. Traders who are too confident and lazy are always in a hurry to chance their luck, which results in failure.

Too much Trading

Most of the traders have an addiction to the stock market and invest too much money. In the process of trying to win more and more money, greedy traders can lose a significant amount of money. Good traders should not act like gamblers as trading in Forex is more skilful than gambling at the casino.

Avoiding Demo trading

Demo trading is compulsory before actually trading. Traders who are too confident and greedy do not understand the significance of demo trading. Demo trading should be done over an adequate period of time so that a good knowledge of market trends and trading techniques can be obtained. You can get a good idea about how you will perform in real trading through demo trading. In most cases, it is found that traders who cannot earn profits in demo trading cannot earn profits in real trading either.

For more detail : Why most traders do not succeed in forex Trading?

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Traders cashing in on PayPal success

In his note to clients Faucette noted that the market may have been overly concerned about a potentially negative impact of renegotiation of its contract with eBay, and that PayPal is maintaining its massive acceptance as an e-commerce website over other digital wallets and that it is expected to benefit significantly from e-commerce tailwinds.

It looks like a great time for traders to start getting friendly with PayPal (PYPL) shares after Morgan Stanley’s James Faucette upped his price target to 76 from 62 along with a number of other analysts who are equally enthusiastic about the online payment service provider.

The above chart plots the increase in share value which has grown steadily from the beginning the year, and which is expected to continue after the third quarter earnings report is released.

In his note to clients Faucette noted that the market may have been overly concerned about a potentially negative impact of renegotiation of its contract with eBay, and that PayPal is maintaining its massive acceptance as an e-commerce website over other digital wallets and that it is expected to benefit significantly from e-commerce tailwinds.

What PayPal has over its competitors is consumer trust. It feels like it has been around for a long time, and that’s a priceless commodity in the e-commerce age.

Since its spin-off from former parent company eBay in 2015 PayPal has expanded into a payments service provider, incorporating mobile payments into its operations. It has also reaped the benefits of giving consumers more options at checkout by using credit cards following its online checkout deals with Visa and Mastercard in 2016.

For more detail : Traders cashing in on PayPal success

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Safe as houses? Not if you live in Australia

According to Jonathan Tepper, one of the world’s experts in housing bubbles, Australia is experiencing the biggest property bubble in history. It has lasted 55 years and seen prices increase 6556% since 1961. “It is the only country we know of where middle-class houses are auctioned like paintings,” he observed recently.

When it crashes it’s likely to bring Australia’s economy crashing down with it, as it’s the only sector which has driven GDP growth of late. It’s one of those rare opportunities traders relish because the volatility in the market will be big and significantly increases the chance of being able to make a huge gain from an investment.

You can thank State and Federal governments for this opportunity. They have done everything they can to fuel the housing market in an effort to boost Australia’s economy and offset the decline in the value and volume of its chief exports iron ore and coal. The growth of the economy has provided governments with a source of tax revenue and proof to voters that their policies result in economic success.

The Australian media has also been complicit in the perpetuation of the property bubble. Objective reporting on property has disappeared because the Murdoch and Fairfax duopoly, which controls media output in the country, have been protecting their only major growth profit centres realestate.com.au and Domain the country’s two largest real estate portals.

Headlines celebrating a 26-year-old train driver who services the debt on five million dollars worth of property with his salary and rental income have become commonplace, with hordes of others being similarly celebrated for their achievements.

The formula for success which has enabled individuals on modest incomes to gain ownership of seven figure property portfolios comes through the black magic of cross-collateralised residential mortgages, where Australian banks allow the unrealised capital gain of one property to secure financing to purchase another property.

This unrealised capital gain takes the place of a cash deposit. For instance, if the house bought a year ago for $350,000 is now valued at $450,000 the bank is willing to let the owner use that equity gain to finance the purchase of another property.

For more detail : Safe as houses? Not if you live in Australia

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Australia’s economy is going down and under

Australia recently recorded its 104th consecutive quarter of growth without a recession, an achievement which breaks the record set by the Netherlands. It prompted Australia’s federal Treasurer Scott Morrison to claim that the economy was in “surprisingly good shape”. His statement is reminiscent of that old joke. How can you tell if a politician is lying? His lips are moving.

Australia’s economy is not in good shape. Its growth has been built on demand for commodities like coal and steel from China and investment in an over-inflated property market that has been fuelled by years of cheap credit. These dual dependencies are about to be brutally exposed.

The exact timing and full impact of Australia’s economic tailspin is unknown. However, a precise date and exact knowledge of its magnitude are unnecessary in order to take advantage of the collapse as a trader. The circumstances that make an economic crash inevitable are already in place and it is far better to be five months early rather than five minutes late for an opportunity like this.

The inevitability of Australia’s financial meltdown is in part due to an external factor which it has no control over: China.

Societe Generale’s China economist Wei Yao recently said: “Chinese banks are looking down the barrel of a staggering $1.7 trillion worth of losses”. Hyaman Capital’s Kyle Bass calls China a “$34 trillion experiment” which is “exploding”, where Chinese bank losses “could exceed 400% of the US banking losses incurred during the sub-prime crisis”.

Simply put, if China’s economy bends Australia’s will buckle.

Australia’s biggest export is iron ore and frequently the country’s main driver of a trade surplus and GDP growth with 81% of its iron ore exports going to China. However, demand for iron ore in China is falling because 50% of it comes from property development which in 2017 is under stress as prices level off and credit dries up. Critically, the price of iron ore has fallen 60% over the last 6 years.

For more detail : Australia’s economy is going down and under

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A step-by-step guide on how to start trading

Trading can be an exciting way to earn an additional income. However, before you start trading you need to learn a few things. Knowing what to expect, what tools you need, and a few techniques will help prepare you so your entry into trading is as smooth as possible. The following things need to be considered before you start trading:

1. Getting to know the market

Traders can trade within many different markets which include the stock market, forex market, options market, and Contract for Difference (CFD) markets.

The stock market involves buying/selling shares of a company. The forex market is the largest market in the world and involves the exchange of one currency for another. The options market allows participants to undertake positions in the derivative of an asset, so the option is not ownership of an underlying asset. The contract for difference (CFD) market allows traders to speculate on the rising or falling prices of instruments such as currencies, shares, indices, and commodities.

When a market is moving downwards, it’s called a bear market. You can take advantage of this through ’short selling’ which involves selling assets or (derivative) you do not own in the hope of buying them back at a lower price in the future. The difference is your profit.

Short selling can be very risky as your losses are unlimited and you could lose more money than you actually have in your trading account. This is because the shares could rise so you would have to cover the difference. Therefore, short selling is not advisable for novice traders.

When a market is moving upwards, it’s called a bull market. You can benefit from this by ‘long selling’ assets as you are hoping that the share price will rise higher and you will make a good profit on your investment. If the position moves in the opposite direction, the maximum loss is what you paid for your shares.

Trading CFDs allow you to not only profit from upward trending markets but also from a downward trending one. Traders can determine which direction they predict the market will go and invest accordingly. Trading CFDs allows you to invest with leveraged products which means that you have more buying power to profit on your investment. However, although potential profits are greatly increased, potential losses can also be increased. This is where it is essential to have a strong risk management plan.

CFD brokers provide investors with access to a wide range of CFDs on currencies, indices, commodities and shares.

You must ensure that your open trading account has sufficient funds in it at all times. If your account balance falls below the close-out level, then your broker reserves the right to sell your financial instruments to cover your margin requirement.

For more detail : A step-by-step guide on how to start trading

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Don’t bank on the banks

As earnings season edges closer, investors are looking over the banking sector’s biggest names to assess their potential.

JPMorgan (JPM) and Citigroup (C) release their figures first, followed by Wells Fargo (WFC) and Bank of America (BAC) then Goldman Sachs (GS) and Morgan Stanley (MS).

US banks have benefited recently from a perceived likelihood of interest rate increases from the US Federal Reserve. However, much of these banks’ future performance will depend on the tax cuts that US President Donald Trump proposed recently, and the ability of his administration to get them through Congress.

If passed, net income of the big six banks could rise $6.4 billion with Wells Fargo, Bank of America and JPMorgan the biggest beneficiaries, according to a recent Bloomberg report.

However, Trump’s administration has been frustrated by Congress’ unwillingness to back the president on a number of policies that he has wanted to pass since coming into power.

And Morgan Stanley’s chief US equity strategist, Mike Wilson, claims that S&P 500 companies will not hit their 2018 estimates without them.

JPMorgan chief executive Jamie Dimon predicted a 20% year-on-year decline in the bank’s trading revenues. However, analysts are expecting JPMorgan to report EPS (earnings per share) of $1.66, an increase from the $1.58 recorded in the same period last year despite revenues falling year-on-year to reach $25.3bn.

Citigroup’s chief financial officer offered a similar outlook revealing that total market revenues are down 15% in the third quarter. However, Citigroup EPS are forecast to be $1.30, six cents higher than the same quarter earnings posted last year.

For more detail : Don’t bank on the banks

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Advantages of forex trading

Forex is an acronym for Foreign Exchange Markets. Forex is also represented by the symbol FX which is a familiar term among investors, bankers and stock brokers across the world. The Foreign Exchange Market or currency market is a global, decentralized market for trading of currencies. The principal participants in the FX market are major international banks.

Financial centers around the world offer buyers and sellers a convenient platform for trading in currencies. In addition, the FX market operates on several levels.

The unique advantages of FX trading.

    24 hour market

FX trading operates on a 24/7 basis except for weekends. Trading around the world begins when the markets open in Australia on Sunday evening and closes when markets end at New York Stock Exchange on Friday evening.

    High Liquidity

Liquidity is when you can easily change an asset into cash with minimum price fluctuations. In the forex market, transactions can easily be carried out by moving huge lots of foreign currencies in and out of the market with least price fluctuations.

    Low transaction cost

The cost for a transaction is added with the price i.e. the buying price of the currency. This is known as a spread – the difference between the buying price and the selling price.

    Leverage

The leveraging factor is the ability to trade more money in the market than that which is actually available on the trader’s account. Forex brokers allow traders to make profits on the leveraging factor. If you are allowed to trade on a leverage factor of 50:1 ratio it means you can trade for $50 with $1 capital available on your account.  You can control a trade volume of $50,000 with just $1000 worth of capital.

 

For more detail : Advantages of forex trading

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The financial advice you wish you’d received at 18

Good financial advice is priceless, and the sooner you get it and apply it the better off in life you’ll be.

Today’s 18-year-olds who are preparing to go to university do so knowing that they are going to rack up a sizeable amount of debt by the time they graduate.

Has anyone sat down with them and fully explained the impact debt has on their life?

Advice about the benefits of getting a good education are echoed everywhere but strangely enough young people get little formal advice about financial planning through regular education channels. Aside from what they hear from their parents, who aren’t always the best at giving guidance on money management, they learn by experience.

The internet offers lots of financial advice in return for a few keystrokes and a couple of clicks but there’s so much out there and much of it is confusing and contradictory.

The financial challenges faced today make being engaged with the world of money more important than ever. Job security is something we reference in history books, banks are a very different entity to what they once were and the world is evolving at a far greater pace than it has ever done in the past and these changes are impacting more people, more quickly than ever before.

1. Be a saver not a debtor Few people truly understand debt and its implications. The first real exposure to debt in life is usually the aforementioned student loan. However, they aren’t a true reflection of debt. It’s actually more like a graduate tax. The amount is paid off over 30 years and how much you repay depends on how much you earn. If you earn less than £21,000 a year, you don’t pay back a penny. According to analysis by the Institute for Fiscal Studies, more than two-thirds of graduates will never repay their entire student loan which hopefully makes you think a bit more carefully about what you choose to study. This is explained more fully in point 3. Saving, especially savings which earn interest, seems to be like an endangered species to people under a certain age. If you have kids open a savings account today, instead of presents (or as well as) ask gift givers to make a deposit into their account and let that snowball gain momentum. By the time they’re 18, you will have already opened up so many more options for them even if going to university isn’t on the agenda. While your savings will be your fall-back position in case something unexpected comes along (good or bad) which requires immediate funding. As for debt it’s not all bad. If the debt you take on leads to an additional income that covers your debt payment it’s a good thing. However, any other debt should be avoided if possible.

For more detail : The financial advice you wish you’d received at 18

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Instant access to profits with the forex debit card

FX brokers need to survive in the competitive FX industry, and to do this it has to continuously offer  innovative and unrivalled products!

The Forex Debit Card is the right way forward!

Forex brokers are now giving their traders a branded forex debit card which offers a sequence of exclusive advantages.

The greatest advantage is that all payments are made quicker and easier especially withdrawals which have been the worst nightmare for many FX brokers. Now it’s possible for traders to  withdraw from their FX trading account at any time and from any place.

The other benefits of a branded Forex debit card are that it can be used as any regular debit card; it is accepted worldwide at any ATM around the world.

The card can also be used for point-of-sale payments everywhere, and most of them offer a free SMS notification of all transactions carried out.

Account balances can be checked online anytime which means that finances can be easily managed.

For more detail : Instant access to profits with the forex debit card

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Water will be a more valuable commodity than oil

Water will become a traded commodity, like oil, gold and silver, it’s just a matter of time.

70% of earth may be covered by it, but less than 1% of it is readily available freshwater, which makes it a scarce resource.

It’s value to human life is unquestioned – oil, gold and silver we can live without – we die without water.

The problem for Wall Street and the major international markets is that in addition to overcoming the difficulty of attaching a price to something so essential to our lives, for it to become a traded commodity it also needs to fulfil three criteria: standardised/interchangeable, tradeable and deliverable.

WATER IS MORE EXPENSIVE THAN OIL TO TRANSPORT

Water is always made up of Hâ‚‚O, but the levels of minerals and metals it also contains depends on the location it is drawn from thus making it difficult to standardise.

Its tradability is dependent on location. There are parts of the world have so much of it their biggest problem is flooding. In others it’s a scarcity and they suffer droughts.

Water is also costly to transport – it costs more to pipe water than it does to pipe oil.

So how can it be said with any certainty that it will become a tradable commodity?

Jean-Louis Chaussade, the chief executive of French utility Suez, recently told the Financial Times that he believed water will become more valuable than oil because of the increased demand from people, industry and agriculture.

DEMAND FOR WATER IS INCREASING BEYOND SUPPLY CAPABILITIES

The United Nations has projected that by 2035, 40% of the world’s population will live with water scarcity. This puts companies in competition with people and farming for supplies.

Local governments around the world are refusing to allow industries to take water from underground to operate which is forcing them to turn to desalination plants or waste water recycling to meet needs.

For more detail : Water will be a more valuable commodity than oil

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CFD in forex market

What Is CFD And How Does It Assist In Forex Market?

Forex market is the platform that provides investors with many opportunities to earn money without even putting many resources into it. Many people attempt to use their own ideas in this trade and try their luck. In order to grasp the concept of CFD (Contract for Difference) in Forex market, you have to understand the short and long positions in the financial derivatives.

Long and Short Positions

When the price of a currency increases and one party decides to buy it for more chances of returns on it, then it takes the long position. However, when the price of a currency decreases and investors decide to sell it in order to retain the actual amount that they invested then it is called the short position.

For more detail : CFD in forex market

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Avoid the pitfalls of forex trading robots

Forex trading robots have become a popular tool in the personal forex market. They’re often attractively priced and are marketed as ‘Expert Advisors’ that can operate on many of the favoured trading platforms. However, an increasing number of traders have been left disappointed with the purchase of their automated forex trading program that ends up performing well below expectations, which leaves them feeling cheated and even results in claims of fraud.

Sold on profits

Anybody with a product to sell will focus on the product’s most attractive features to get you to buy it, and that is especially true about automated trading products. Often, they’re presented as offering the path to financial freedom and being easy to use; claims that are backed up by historical trading profits and glowing testimonials from seemingly satisfied users. In reality, the evidence of their success is just a small sample of trading when the software enjoyed a profitable spell and leaves out the less impressive other periods which more accurately reflect its true capabilities and how it performs for most of the traders who buy it.

The disclaimer makes it alright

Every forex trading robot is sold with a disclaimer (sometimes well hidden) that denies any responsibility for how it will perform in the future. The words may be different each time, but the message always amounts to the same thing: there’s no guarantee this software will trade profitably based on its historical performance and is there to protect the vendor from potential fraud claims.

For more detail : Avoid the pitfalls of forex trading robots

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5 tips for trading during volatile markets

Trading opportunities are improved by a rise in volatility. The market fluctuates continuously which generates a positive mood for a great upward trend; however, there is also the possibility for significant losses if measures are not taken. When the market is volatile, adjustments regarding trading strategies need to be applied as the markets are uncertain.

Helpful advice for trading in volatile markets:
1. Trade selections
Volatility of the market can cause one to take the risk in order to derive profits. Unprofessional traders can make a bad decision by making incorrect trading selections. If there are trading opportunities to gain a profit in a fluctuating market, there is also the possibility of acquiring losses. Do not place too many trades, but take into consideration the level of risk. It is important to consider financial and psychological levels of risk tolerance.
2. Trade with smaller trade positions
Leverages affect trading largely when the market is volatile. The degree of leveraging and position sizing should be considered even if you have the margin of 1% or half percent. Trade with an average of 1 lot position instead of 2 lot position since the possible loss of 100-200 pips can be made .
3. Discipline is the key to effective trading
Trade in a more disciplined way when the market is unstable. Maintain your trading strategy regardless of the market condition. Control yourself from making trading mistakes and avoid temptations. Follow the set stops, standards for risk management and the contingency plan with confidence. This will assist in deciding the level of risk.
4. Tighten your stops
Tightening stops can perform as great risk managers during periods when the market is volatile. Tight stops can safeguard the position of your currency. Consider placing stops with lesser pips. A break in stop indicates the possibility of a lower trend and tightening the stop can avoid a loss. The currency pair is the determining factor of the width. Traders will have wider stops while trading with Yen. Aim for 75 pip width stops instead of 100 pip.
5. Pull up your socks!

For more detail : 5 tips for trading during volatile markets

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Rule the market through a confident trading approach

The key to success is confidence.

The Foreign Exchange Market is a decentralized market that is meant for trading currencies. It is the Forex that determines the value of currencies. The magnetic power of money has motivated the investors to invest in stock markets. Earning money through equities is not an easy task. You need extensive research and lots of discipline, patience and confidence. You need to be able to interpret the market. Due to the volatility of a market, investors are in a continuous dilemma whether to invest or not. Market volatility causes the investors to lose trust in the stock market and shut themselves off from stock markets. Ideal investors must know how to deal confidently with this volatility. People who lack confidence cannot sustain the highs and lows of the marketing trends.

Thinking about the winnings

You need to be confident in order to trade efficiently. Trading efficiently helps to develop  confidence.  Confidence and perfect trading habits are almost equivalent. Low level of confidence can negatively affect trading performance. Thinking about your winnings can make you a winner. It is necessary to think about your wins, and it is necessary to consider the factors that result in the win. Important factors must be noted in a trading journal to record the trading policies that prompted the win. You must memorise trading techniques in order to acquire trading skill which will make you more confident in trading.

For more detail : Rule the market through a confident trading approach

[sakura]

German Elections: Will Merkel hold on to power?

Elections in economically powerful countries like Germany have always provided an opportunity traders can take advantage of, because of the market volatility that preceded them.

The uncertainty that surrounds an election result creates turbulence in the markets, which are exactly the conditions traders need to make bigger profits on their trades.

If recent history has taught us anything, it is to expect the unexpected when the German Election takes place on Sunday 24th September – regardless of what exit polls and the media are reporting will happen.

EXIT POLLS ARE LESS RELIABLE THAN BEFORE

Opinion polls have consistently predicted that Angela Merkel will secure a fourth consecutive election victory for her Christian Democratic Union (CDU) party and their sister party the Christian Social Union (CSU).

However, exit polls are not as reliable as they once were. Britons were expected to vote against Brexit and Hilary Clinton was considered a more likely US President than Donald Trump.

The pulse of the voter is far more difficult to anticipate, and more susceptible to change.  

The impact of social media and other, less predictable influencers, can have a significant effect on the opinions and perceptions of voters, especially in those critical last few days before the election itself takes place.

No outcome is certain until the last votes have been cast.

For more detail : German Elections: Will Merkel hold on to power?

[Mehraj Hossain]

Every Forex trader needs to have many ideas about trading articles. Because articles should be used properly with a view to analyze market. But there are many brokers in the retail market place where I find all necessary trading articles indeed. But with Trade12 I have fluent trading platform indeed and their platform includes more than 250 technical tools and free from all technical errors like dealing desk, reqoutes and slippage.

[sakura]

Forex coaching pays dividends

Trading forex is a bit like driving, if you don’t get a few lessons from someone who knows what they’re doing you’ll probably crash. A good forex trading coach will help you become a profitable trader far sooner than if you dive into trading without proper training.

A good trading coach, much like a good driving instructor, is aware of the mistakes a novice is likely to make and is able to steer you around or away from them and can explain why a certain course of action or choice is the better option. Much like driving, most of us want to learn so that we can use it safely, frequently and of course successfully. Driving without caution or at high speeds, without understanding the dangers, mirrors unprofitable or high risk trading and inherently increases the chance of losing money.

Once you’ve accepted that coaching is the best way to start the next step is choosing which coach is right for you. In most situations where you need an expert, your natural instinct is to gravitate to the best available. This is where most people run into their first hurdle, as the industry is littered with so-called ‘forex gurus’ but who are not even professional traders.

A recommendation from someone you know and trust is always a good place to start, but if no-one you know can advise you on coaching for forex trading there are some things to look out for which will help you make an informed choice.

‘Try before you buy’ is a good way to get a better idea of the quality of the training a forex coach is able to provide, so it makes sense to look into some of the free training advice your potential coach might offer on their website.

If the coach you’re looking at doesn’t offer any advice for free and is simply trying to sell you a product that makes some grand promises based on past performance it is best to stay clear.

Another simple test to carry out is to discover if you are dealing with a real person. A forex coach who features in his or her own videos and uses their real name is more likely to be a genuine trader with something useful to offer. Try out the phone number, email or any other contact information provided and check out if they are really on the other end of that communication line. If they are present it means they’re also accountable and that is a sure sign they are confident in what they’re offering.

For more detail : Forex coaching pays dividends

[sakura]

Strategies for successful trading decisions – going short or long

The Forex market is quickly becoming the focus of attention for millions of new entrants as a result of its unique advantages. A large number of people have learnt how to make clever investment choices in order to take advantage of the market. Two strategies in Forex are going long and going short – once you understand these two strategies you will be able to make important decisions in order to be profitable. The two main strategies will be examined below.

Going Short

This trading strategy is when the base currency is sold in order to buy it at a later stage when the price begins to fall, resulting in a return from the transaction. For example, if the current GBP/USD is 1.5345 meaning we pay 1.5345 Dollars for one Pound Sterling, and we have $1000 dollars, we would sell the Dollars in order to purchase the Pound Sterling. This is carried out when the cost is expected to fall again in a short period of time. When the price GBP/USD falls to 1.5350, this means that more Dollars can be purchased with the same amount of Pounds that were obtained at the start. The additional dollars can be kept as profit which were earned by considering the dollar as the base currency.

Risk in Short Position

As with all financial markets, forex involves the same amount of risk. If the prices go in the exact opposite direction than originally expected, there will be a loss instead of a profit. For example, if the GBP/USD goes to 1.5340, you would not even get the same amount of Dollars that you sold initially. This strategy is only profitable if prices drop.

For more detail : Strategies for successful trading decisions – going short or long

[sakura]

Factors causing foreign exchange volume growth

The foreign exchange market is now considered to be the largest market in the world. The huge success of the market is down to the fact that it deals in the only asset in the world that possesses complete market liquidity: money.

The foreign exchange market deals essentially in the trading of currency, which means buying one currency by exchanging it for another. The value of currencies relative to each other is constantly fluctuating. It allows people to gain a profit by buying a currency during a period of stability and then selling it off if the value of the currency rises.

The dollar is often considered to be the most stable currency as the American dollar is known for its solidity and stability. However, this once highly regarded currency seems to be experiencing a downward trend. Several factors have resulted in the depreciation of the American dollar after an unexpected foreign exchange volume growth of currencies being exchanged in the market.

Recently, America has made certain economic and political moves that many countries considered to be hostile. In addition, America’s political strategies have had the opposite effect in certain countries where it was trying to gain political power. An example of this is America’s involvement in the lifting of sanctions against Iran. America’s under the table economic war against Iran has always been linked to nuclear weapons. The United States used its powerful economy and its status as the world’s major cultural exporter to leverage Iran’s abolition of its developing nuclear program.

For more detail : Factors causing foreign exchange volume growth